Saudis dig deep into their wallets as Eid Al-Adha drives spending surge

Saudis dig deep into their wallets as Eid Al-Adha drives spending surge
Muslims participate in a special morning prayer around the Kaaba, Islam's holiest shrine, at the Grand Mosque complex in Mecca on June 6, 2025, to mark the start of the Eid al-Adha festival, which marks the end of their Hajj pilgrimage. AFP
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Updated 06 June 2025
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Saudis dig deep into their wallets as Eid Al-Adha drives spending surge

Saudis dig deep into their wallets as Eid Al-Adha drives spending surge

RIYADH: Saudi Arabia’s Eid Al-Adha holiday is proving to be a major economic driver, fueling robust growth across the Kingdom’s livestock, retail, and domestic tourism sectors.

Coinciding with the annual Hajj pilgrimage, the extended public holiday channels billions of riyals into the economy as businesses ramp up operations to meet soaring seasonal demand.

Livestock markets are bustling, shopping centers are teeming with eager consumers, and hotels and resorts across the Kingdom are reporting high occupancy rates — all pointing to a dynamic shift in consumer behavior and an increasingly diversified economic landscape.

Retail activity, in particular, is experiencing a seasonal boom. From glittering gold souqs and fashion boutiques to thriving e-commerce platforms, shoppers are on the lookout for Eid gifts, festive attire, and high-end products.

A recent survey by Toluna and MetrixLab shows that 47 percent of Saudi consumers expect to spend more this Eid than last year. Over half (51 percent) are boosting their shopping budgets, while 44 percent are allocating more for dining out.

Among the most in-demand items this season are fashion apparel, gold and diamond jewelry, perfumes, and electronics. In response, retailers are rolling out aggressive promotions, with 49 percent of consumers attracted to price discounts, 40 percent favoring bundled deals, and 33 percent looking for cash-back incentives.

The digital retail landscape is also witnessing significant momentum. The survey highlights that 31 percent of consumers now fall into the “heavy digital shopper” category — individuals who make purchases daily or several times a week.




Perfumes are one of the most in demand items. Getty

“Eid gifting remains a core element of celebrations, with 89 percent of KSA residents planning to give gifts in 2025,” the report stated.  

The report added: “Luxury gifting continues to rise, with 41 percent opting for fashion cloths, up from 36 percent in 2024, dates, and sweets 45 percent, and major electronic devices gaining popularity, rising from 22 percent to 24 percent.” 

Fragrances and gourmet items such as dates and chocolates also continue to dominate gifting choices, reflecting cultural values and the desire to present meaningful and luxurious tokens of appreciation.  

The trend of self-gifting, while slightly down from 2024, remains strong, indicating the growing role of Eid as a moment for personal indulgence.

The tourism and hospitality sector stands out as one of the biggest winners during Eid Al-Adha, with hotels, resorts, and travel operators across Saudi Arabia witnessing a surge in demand.  

JS Anand, founder and CEO of Leva Hotels, told Arab News that the holiday’s timing alongside the Hajj pilgrimage makes it a uniquely impactful season, not only for spiritual observance but also for economic momentum driven by both local and international tourism. 

“Eid Al-Adha will increasingly serve as a key driver for business and consumption, benefiting both local and regional markets. Beyond its economic impact, the holiday is also a time for spiritual reflection, generosity, and community, while highlighting Saudi Arabia’s vibrant culture and hospitality,” Anand said. 

He added: “Increased consumer spending during this period benefits industries such as transportation, hospitality, and retail, while the extended holiday period further amplifies economic activity.” 

Speaking on shifting consumer behaviors, Anand noted that travelers are becoming more discerning and value-conscious. While they are not necessarily looking for the cheapest option, they want to ensure they’re getting meaningful value for what they pay. 

He added: “Guests increasingly expect hotels to deliver not just a place to stay, but a personalized, experience-rich offering that resonates with their lifestyle and preferences.” 




JS Anand, founder and CEO of Leva Hotels. Supplied

Domestic tourism continues to thrive, but international travel has surged in popularity among Saudi residents.  

According to Wego, 96.12 percent of Eid-related travel searches in the Kingdom are now for international destinations, up from 87.34 percent last year.  

Top destinations include Egypt, India, and the UAE, as well as Pakistan, Turkiye, and Bangladesh, along with a rising interest in European and Southeast Asian locales such as Italy, Thailand, and Malaysia. 

Despite the international travel boom, domestic destinations like Jeddah, Riyadh, and Madinah, alongside Dammam and Abha, remain popular for their cultural attractions and spiritual experiences.  

Wego data suggests that cultural exploration is becoming a primary driver in destination selection, as travelers seek meaningful connections during the holiday. 

Anand affirmed this trend: “The hospitality sector must be agile, crafting offerings that cater not only to the loyal domestic traveler but also to the rising wave of international visitors.” 

He continued: “For hotels, this means providing thoughtfully tailored packages, seamless digital booking experiences, and culturally resonant, memorable stays that appeal to both local guests and the growing base of inbound international tourists discovering Saudi Arabia during the festive Eid season and beyond.” 

Businesses are also preparing for the holiday through targeted promotions and operational enhancements. “Today, it’s all about creating value-added, memorable, immersive experiences and curating unique, personalized offerings to meet the surge in demand and deliver exceptional value.” 

Mohammed Al-Mu’ajil, a tourism expert, told Arab News that Saudi Arabia is seeing remarkable shifts in travel and consumer behavior this Eid season. 

“In 2025, Saudi Arabia witnessed a significant rise in consumer spending, with total expenditure reaching approximately SR148 billion ($39.46 billion) in March, the highest level since May 2021, reflecting a 17 percent increase compared to the previous year. This growth is attributed to the Ramadan and Eid Al-Fitr seasons, in addition to the Umrah season,” Al-Mu’ajil said. 

With more people shopping and traveling, businesses are also recalibrating their approach to Eid.  

Al-Mu’ajil also highlighted the increasing role of technology and digital outreach stating: “Companies are increasingly relying on digital channels to engage with customers, with 94.03 percent of internet users in the Kingdom active on social media platforms such as X, TikTok, and Snapchat.” 

He also explained that domestic hotel nights increased by 14 percent, while international hotel nights rose by 13 percent. 

The Kingdom recorded a 48 percent increase in international visitors during the first quarter compared to the previous year, driven by Vision 2030 initiatives and relaxed visa regulations. 

International destinations are seeing strong demand from Saudi tourists, particularly Egypt, Turkiye, and Dubai, due to their geographic proximity, cultural similarities, and diverse tourism offerings,” he said.  

“Red Sea cruises have also emerged as a new and appealing option, offering luxurious and comprehensive travel experiences.” 

He added that domestic travel remains a strong draw, stating: “On the domestic front, cities such as AlUla, Abha, Al-Baha, Jeddah, and Riyadh have become favored destinations for Saudi travelers. These cities are distinguished by their natural and cultural diversity as well as advanced infrastructure, making them attractive to families and holidaymakers during the Eid season.” 

Al-Mu’ajil added that digital platforms are increasingly central to consumer engagement, noting that the number of e-commerce users in Saudi Arabia is projected to reach 34.5 million by the end of 2025.  

“With Internet penetration expected to rise from 66.7 percent in 2023 to 74.7 percent by 2027, digital engagement is reshaping how Saudis prepare for Eid, from online bookings to promotional offers,” he said.

Increased spending

More than half — 51 percent — of consumers in the Kingdom said they are willing to spend more on Eid gifts this year.  

According to the Toluna and MetrixLab report, this is driven by a mix of improved financial confidence and a desire to make the holiday more special after years of pandemic-related limitations.  

About 38 percent of consumers expressed a desire to make this Eid more special to compensate for pandemic-era limitations, while 36 percent noted improved financial standing. 

In addition, 35 percent plan to expand their gift lists to include more people, and 30 percent expressed a desire to be more generous with their families and friends. 

These sentiments are reflected in higher spending across multiple categories. Fashion apparel, fragrances, and electronics have seen a significant bump, while gold and diamond jewelry purchases have also increased slightly.  

The trend underscores Eid’s growing role not just as a religious and cultural moment, but as a peak period of emotional expression through gifting and consumer engagement 

With 89 percent of consumers planning to give gifts, and significant growth in retail and travel expenditures, Eid Al-Adha is proving to be not just a spiritual cornerstone — but a vital pillar of the Kingdom’s economy. 

The economic impact of Eid Al-Adha is particularly evident in the livestock sector, which sees a surge in demand — particularly in sheep and goats.  

Local farmers, traders, and international suppliers navigate challenges such as rising feed costs and supply chain constraints while ensuring a steady supply.  

Although the Kingdom’s livestock market remains robust, escalating feed prices have put upward pressure on animal prices, prompting some households to consider shared sacrifices or smaller livestock options. 

Seasonal livestock markets are also set up across major cities to accommodate the peak demand period. 

The evolving behavior of Saudi consumers — seeking quality, cultural relevance, and immersive experiences — indicates broader societal shifts and economic resilience.  

As Vision 2030 continues to reshape the Kingdom’s economic landscape, seasonal events like Eid Al-Adha serve not only as cultural milestones but also as indicators for consumer confidence and economic diversification.


CMA approves new rules to spur Saudi investment fund sector

CMA approves new rules to spur Saudi investment fund sector
Updated 09 July 2025
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CMA approves new rules to spur Saudi investment fund sector

CMA approves new rules to spur Saudi investment fund sector

RIYADH: Saudi Arabia’s Capital Market Authority has announced a package of regulatory enhancements aimed at strengthening the investment fund environment in the Kingdom, according to a press release issued on Wednesday.

The reforms, which involve amendments to the Investment Funds Regulations, Real Estate Investment Funds Regulations, and the glossary of terms used across CMA regulations, are designed to advance the regulatory framework governing investment funds.

The goal is to elevate the competitiveness of the asset management industry by identifying development opportunities, adopting international best practices, and enhancing transparency and governance.

The reforms reflect Saudi Arabia’s broader efforts to deepen its capital markets and attract more local and international investment, in line with Vision 2030 economic diversification goals.

According to a CMA board decision, the updated rules will help expand and develop the investment fund and REIT sectors, increase transparency for unitholders, and improve investor protection through more robust governance standards.

Key reforms

One of the major changes includes broadening the categories of entities allowed to distribute investment fund units. Under the new rules, fund units may now be distributed via licensed investment platforms and e-money institutions approved by the Saudi Central Bank, including through their websites and mobile apps.

Additional reforms cover the procedures for fund termination and the removal of fund managers, as well as new guidelines for voluntary withdrawal by managers of both public and private funds.

A key requirement is obtaining CMA approval for such withdrawals, and ensuring that the outgoing fund manager transfers all management responsibilities to a successor within 60 days. This is aimed at safeguarding investor rights and ensuring a smooth transition process.

REIT flexibility in parallel market

In a move to expand investment opportunities and increase potential returns for investors, the CMA will now allow traded real estate investment funds listed on the parallel market to invest in real estate development projects at the time of fund establishment.

These investments will not be bound by the standard asset allocation ratios and restrictions previously outlined in the Real Estate Investment Funds Regulations.


Egypt’s annual urban consumer inflation at 14.9 percent in June, stats agency says

Egypt’s annual urban consumer inflation at 14.9 percent in June, stats agency says
Updated 09 July 2025
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Egypt’s annual urban consumer inflation at 14.9 percent in June, stats agency says

Egypt’s annual urban consumer inflation at 14.9 percent in June, stats agency says
  • Urban food and beverage prices were down 1.2%

DUBAI: Egypt’s annual urban consumer price inflation slowed to 14.9 percent in June from 16.8 percent in May, data from statistics agency CAPMAS showed on Wednesday.

The drop in inflation is steeper than the median forecast of 15 analysts polled by Reuters, which had seen annual urban consumer inflation last month at 16.2 percent.

Urban food and beverage prices were down 1.2 percent overall compared to May 2025 but were up by 6.9 percent against June 2024, according to CAPMAS.

Urban inflation on a monthly basis inched down in June by 0.1 percent compared to May, as meat and poultry prices were down by 3.8 percent, fruits by 2.1 percent and vegetables by 1 percent, while the prices of bread and cereals were up by 0.3 percent and seafood by 0.8 percent.

Egypt’s annual inflation has plunged from a record high of 38 percent in September 2023, helped by an $8 billion financial support package agreed with the International Monetary Fund in March 2024. 


Most Gulf markets close higher shrugging off Trump’s tariff news

Most Gulf markets close higher shrugging off Trump’s tariff news
Updated 09 July 2025
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Most Gulf markets close higher shrugging off Trump’s tariff news

Most Gulf markets close higher shrugging off Trump’s tariff news
  • Saudi Arabia’s benchmark index eased 0.1%
  • Abu Dhabi index added 0.4%

LONDON: Most stock markets in the Gulf reversed early losses to close higher on Wednesday as investors appeared unfazed by the latest tariff threats from US President Donald Trump. 

Trump ramped up his trade offensive on Tuesday, announcing a 50 percent tariff on copper and renewed long-threatened levies on semiconductors and pharmaceuticals. He also reiterated plans to slap 10 percent tariffs on imports from Brazil, India, and other BRICS countries. 

Saudi Arabia’s benchmark index eased 0.1 percent, dragged down by a 3.1 percent slide in utilities heavyweight ACWA Power and a 0.9 percent decrease in oil giant Saudi Aramco.

In the UAE, Dubai’s main index gained 0.7 percent, hitting a fresh 17-year high, lifted by a 3.6 percent rise in Emirates Central Cooling Systems Corp. 

Emirates has signed a preliminary agreement with Crypto.com to accept payments through its platform. 

The UAE continues to grow as a regional hub for crypto firms, with several enabling crypto payments for real estate, tuition, and transport. 

Abu Dhabi index added 0.4 percent, posting its sixth straight session of gains. 

Abu Dhabi National Insurance Co. advanced 6.4 percent following regulatory approval to open a branch in India. 

Qatar’s benchmark index closed flat. 

Outside the Gulf, Egypt’s blue-chip index, which traded after a session’s break, finished 0.4 percent higher, with Commercial International Bank rising 0.6 percent higher. 

Egypt’s stock exchange suspended trading on Tuesday, citing ongoing disruptions affecting brokerage firms’ ability to communicate efficiently across the trading system, after a fire broke out on Monday in a telecoms data center in Cairo. 


Blacklane and EVIQ partner to expand EV charging network in Saudi Arabia 

Blacklane and EVIQ partner to expand EV charging network in Saudi Arabia 
Updated 09 July 2025
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Blacklane and EVIQ partner to expand EV charging network in Saudi Arabia 

Blacklane and EVIQ partner to expand EV charging network in Saudi Arabia 
  • Initiative aims to support development of sustainable infrastructure, focusing on clean technologies
  • Deal includes development of dedicated charging stations for vehicle fleets

JEDDAH: Electric vehicle charging infrastructure is set to expand across Saudi Arabia following a strategic partnership between Blacklane and EVIQ, accelerating the Kingdom’s shift toward clean and sustainable mobility. 

Under the agreement, EVIQ — a joint venture between the Public Investment Fund and Saudi Electricity Co. — will collaborate with the international chauffeur-driven transport firm to support the expansion of the Kingdom’s EV charging network across key cities and mobility hubs, according to a press release. 

The initiative aims to support the development of sustainable infrastructure in line with Saudi Vision 2030, focusing on clean technologies and environmental responsibility. It also supports the Kingdom’s goal to transition 30 percent of vehicles in Riyadh to electric by 2030 and achieve net-zero emissions by 2060 — a target it aims to reach ahead of schedule

Mohammed Bakr Gazzaz, CEO of EVIQ, said: “By integrating national charging infrastructure with premium fleet operations, we aim to reinforce the foundation for a scalable, future-ready transport ecosystem aligned with Saudi Arabia’s Vision 2030.” 

The deal includes the development of dedicated charging stations for vehicle fleets, most notably an integrated charging center at Blacklane’s new regional headquarters for the Gulf region in Riyadh. 

“As we rapidly scale operations across the nation, we’re thrilled to have EVIQ on-board to actively support our expanding electric fleet. Together we are setting new benchmarks for sustainable innovation and success,” said Jens Wohltorf, CEO and co-founder of Blacklane. 

Blacklane will incorporate EVIQ’s public charging network into its operations in Saudi Arabia to support its growing electric vehicle fleet. Both companies also plan to explore opportunities for system integration aimed at improving network functionality and user accessibility. 

The partnership follows Blacklane’s recent introduction of Lucid electric vehicles into its Saudi fleet, as part of efforts to expand its EV offerings. EVIQ’s fast-charging network supports the company’s goal of enhancing its electric mobility services in the Kingdom, the release added. 

As part of the partnership, the companies will co-develop training programs under Blacklane’s Chauffeur Training Academy, focusing on EV charging best practices to support service quality, safety, and sustainability. 

Blacklane’s expansion in Saudi Arabia is backed by TASARU Mobility Investments, a wholly owned investment arm of PIF.


Closing Bell: Saudi main index slightly dips to 11,278; Nomu gains

Closing Bell: Saudi main index slightly dips to 11,278; Nomu gains
Updated 09 July 2025
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Closing Bell: Saudi main index slightly dips to 11,278; Nomu gains

Closing Bell: Saudi main index slightly dips to 11,278; Nomu gains
  • Parallel market Nomu gained 104.43 points to close at 27,448.22
  • MSCI Tadawul Index edged down 0.27% to 1,445.25

RIYADH: Saudi Arabia’s Tadawul All Share Index dropped marginally on Wednesday, shedding 16.34 points or 0.14 percent to close at 11,277.73. 

The total trading turnover of the benchmark index was SR5.48 billion ($1.46 billion), with 140 of the listed stocks advancing and 109 declining. 

The Kingdom’s parallel market Nomu, gained 104.43 points to close at 27,448.22.

The MSCI Tadawul Index edged down by 0.27 percent to 1,445.25.

The best-performing stock on the main market was Umm Al Qura for Development and Construction Co. The firm’s share price increased by 8.62 percent to SR26.70. 

The share price of Saudi Real Estate Co. also rose by 7.68 percent to SR20.89. 

Retal Urban Development Co. also saw its share price advance by 6.62 percent to SR16.10. 

On the announcements front, Alinma Bank said that it completed the issuance of US dollar-denominated sukuk worth $500 million, under its Trust Certificate Issuance Program. 

According to a press statement, the sukuk issue is expected to settle on July 15. 

The share price of Alinma Bank declined by 1.19 percent to SR26.68. 

Jahez International Co. for Information System Technology announced that it has signed an agreement to acquire a 76.56 percent stake in Snoonu Corporation Holding LLC, a Qatari-based technology and logistics firm that operates an e-commerce and on-demand delivery platform. 

In a press statement, the company revealed that it will acquire 8.14 million shares, representing 75 percent of Snoonu’s share capital, from existing shareholders for $225 million. 

Jahez will also subscribe to 723,960 newly issued shares in Snoonu, representing 1.56 percent of the stake, for $20 million. 

The share price of Jahez edged up by 1.11 percent to SR27.44.